Ondo [ONDO] has bounced 6.6% from the $0.41 low it formed on Sunday, the 18th of October. Despite the small bounce, Ondo crypto was still down 10% over the past week’s trading.
Compared to Bitcoin’s [BTC] performance of a 2.1% weekly drawdown, it appeared that ONDO bulls displayed relative weakness that could soon turn into a downtrend.
Last week, the altcoin market cap, including Ethereum [ETH], fell nearly 8% from $1.13 trillion to $1.05 trillion. Bitcoin spot ETFs saw net outflows of $228.4 million from the 12th to the 16th of October.
These factors helped explain the Ondo crypto decline. Can the bulls stage a comeback?
Can Ondo crypto hold its bullish footing?
On the 1-day timeframe, the $0.425 level had been a supply zone from June to late September. A breakout above this zone established a bullish market structure for Ondo crypto on this timeframe.
The bullish order block highlighted at the $0.43 area is a place where buyers have to make a stand. A daily session close below $0.404 will flip the daily swing structure bearishly.
Meanwhile, the On-Balance Volume (OBV) moved sideways in October, while the RSI fell, signaling increasing bearish momentum.
Buyers still had support to defend, but momentum was working against them.
Traders’ call to action: Buy
The 4-hour internal structure was bearish, evidenced by the price dip below $0.422. The OBV on this timeframe did not show heavy selling pressure, although the momentum was in favor of the sellers, and the RSI has been below neutral 50 for a week.
Even so, the bullish hopes remained alive.
The $0.404 low must be defended, making it a good place for swing traders to place their stop-loss. Traders can also consider placing an SL slightly lower, in anticipation of a liquidity sweep into the $0.404 low to hunt SL orders.
The risk-to-reward is relatively high for buyers, but they must be clear on the nearby invalidation as well. A Bitcoin turnaround would aid in the Ondo crypto sentiment.
On the other hand, a daily session close below $0.404 should flip swing trader bias bearishly.
Final Summary
- Ondo crypto has bounced 6.6% from Sunday’s lows, but was still down 10% over the past week.
- A buying opportunity was present with a close-by invalidation, and could yield a relatively high risk-to-reward trade.
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